The consumer price index was 247 in year 1 and 272 in year 2.The rate of inflation in year 2 was about:
A)12 percent.
B)10 percent.
C)8 percent.
D)6 percent.

Question

Quizplus · Accepted Answer

To find the rate of inflation, we use the formula:

(Increase in CPI ÷ Base CPI) × 100

Here, the increase in CPI is:

272 - 247 = 25

The base CPI is:

247

So, the rate of inflation is:

(25 ÷ 247) × 100 = 10.12

Rounding off, we get:

10 percent

Therefore, the answer is B) 10 percent.

The Consumer Price Index Was 247 in Year 1 and 272